FOR IMMEDIATE RELEASE:

D&M CANADA TO PROVIDE ALL ESCIENT®
SALES AND MARKETING IN CANADA

-- Move Will Allow Increased D&M Brand Focus to Escient in Canadian Market --

INDIANAPOLIS, IN, September 14, 2006 - Escient, the innovator in digital media management, today announced that effective immediately all sales, marketing, distribution and service support for its products in the Canadian market will be handled by D&M Canada, Inc., based in Markham, Ontario. Phil Bryant, Vice President of sales for Escient’s D&M sister company Denon Canada, will assume overall responsibility for distribution and marketing of Escient products in Canada.

Bernie Sepaniak, president of D&M Holdings’ ReplayTV, Escient and ACT divisions noted: “As Escient continues to introduce new and exciting media management products, this consolidation of our efforts for the Canadian market will benefit the company by bringing all our products under the umbrella of a D&M Holdings entity. We will therefore be in a better position to fully exploit marketing synergies between D&M companies and more effectively serve our valued custom installation and retailer customers throughout Canada.”

About Escient
Escient is a division of D&M Holdings U.S., Inc., and is the pioneering leader in the design, development, manufacture, marketing, sales, distribution and support of a groundbreaking category of audio/video products that meld the power of the Internet seamlessly with intuitive home-entertainment devices. Escient’s products and services are designed to enhance the entertainment experience by providing previously unheard-of ways to access music, movies and related content throughout the home. The company possesses a deep portfolio of designs for new products including media servers, DVD systems, remote players and networking and streaming devices, that are brought to market under the Escient brand through a channel of over 800 locations throughout the United States, Canada, Europe and Mexico, and in partnership with other leading global consumer electronics brands.

About D&M Holdings Inc.
D&M Holdings Inc. (TSE II: 6735) is based in Kawasaki and owns the Denon®, Marantz®, McIntosh® Laboratory, Boston Acoustics®, Snell Acoustics, D&M Professional, Denon DJ, ReplayTV® and Escient® brands. Denon, Marantz, McIntosh and D&M Professional are global industry leaders in the specialist home theater, audio/video consumer electronics or professional audio markets, with a strong and long-standing heritage of manufacturing and marketing high-performance audio and video components. Boston Acoustics, with its signature The Boston Sound, is a leader in premium loudspeakers for home and audio markets. Snell is a super premium speaker brand. The ReplayTV and Escient brands represent award-winning technologies in digital home entertainment. Additional information is available at www.dm-holdings.com.

Denon and Marantz are registered trademarks of D&M Holdings Inc.; McIntosh is a registered trademark of McIntosh Laboratory, Inc.; Boston Acoustics is a registered trademark of Boston Acoustics, Inc.; ReplayTV, Escient, and the Escient logo are registered trademarks and FireBall is a trademark of Digital Networks North America, Inc.

DISCLAIMER
Statements in this news release that are not statements of historical fact include forward looking statements regarding future events or the future financial performance of the company. We wish to caution you that such statements are just predictions and that actual events or results may differ materially. Forward looking statements involve a number of risks and uncertainties surrounding competitive and industry conditions, market acceptance for the company's products, risks of litigation, technological changes, developing industry standards and other factors related to the company's businesses.

Media Contact:
David Struzzi dstruzzi@dba-pr.com
DBA Public Relations
1-212-388-1400